Indian Hotels Co Ltd's Q2FY19 consolidated net loss narrows to Rs5.21cr yoy: In-line with Estimates

The company’s consolidated revenue stood at Rs964.53cr, up 13.3% yoy but down 1.55% qoq.

Nov 14, 2018 12:11 IST India Infoline Research Team

Indian Hotels Co Ltd Q2FY19

Consolidated Results Q2FY19: (in Rs cr)

Q2FY19 YoY (%)
Revenue 964.53 13.3
EBITDA 99.23 81.8
EBITDA Margin (%) 10.3 388
Net Loss (adjusted) 5.21 -
***EBITDA margin change is bps
The Indian Hotels Company Ltd's consolidated revenue for Q2FY19 came in at Rs964.5cr, up 13.3% yoy. Operating profit for the quarter came in at Rs99.2cr, up 81.8% yoy, while the operating EBITDA margin expanded ~388bps yoy to 10.3% in Q2FY19. The adjusted net loss attributable to owners in Q2FY19 narrowed down to Rs5.2cr as against a net loss of Rs57.7cr in Q2FY18. The revenue, EBITDA, and adjusted net profit were in-line with the consensus estimates.

• Indian Hotels (IHCL) has signed 15 new hotels in H1FY19 (1,825 rooms) resulting in a 90% growth in pipeline on a yoy basis.
• IHCL witnessed an increase in RevPAR by 8.1% yoy (Industry RevPAR growth at 3.7%) during H1FY19, which is seasonally a slow period for the domestic hospitality industry. This increase was driven by growth in the industry and market share gains by the company's brands. The occupancy rose ~3.5% yoy to 63%, whereas ARR increased 2% yoy to Rs7,573, during H1FY19. The occupancy including International hotels stood at 64%.
• The consolidated net debt/equity of the company has risen to 0.5x as on September 30, 2018, as against 0.45x as on March 31, 2018.
• IHCL has an inventory of 17,360 rooms as on November, 2018.
• The EBITDA margin expansion is on account of an increase in RevPAR and cost optimization.
• Finance cost reduced significantly by 35% yoy to Rs46.7cr in Q2FY19. This led to narrowing down of net loss as compared to the previous period.
• Other incomes stood at Rs16.6cr in Q2FY19 vs Rs12.5cr in Q2FY18.
• There was a reversal of deferred tax during the quarter of Rs24.2cr, resulting into narrowing down of net loss as compared with previous period.
• The share of profit of associates includes gains (to the extent of IHCL’s share) on sale of a hotel property by Oriental Hotels Ltd of ~Rs101cr during the quarter.
• The exceptional item for the quarter include loss on change in fair value on cross currency swap derivative contracts for the quarter of Rs46.3cr.

Technical View:

Indian Hotels Co Ltd ended at Rs130.75, up 0.4 points, or 0.31%, from its previous close of Rs130.35 on the BSE. The scrip opened at Rs131.60 and touched a high and low of Rs131.95 and Rs130, respectively. A total of 6,30,287 (NSE+BSE) shares were traded on the counter. The stock traded below its 200-DMA.

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